Qingdao Richen Food Co., Ltd. (603755) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Qingdao Richen Food Co., Ltd.

Why is Qingdao Richen Food Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 11.05% and Operating profit at 0.86% over the last 5 years

Flat results in Sep 25

DEBT-EQUITY RATIO (HY) Highest at 17.25 %
CASH AND EQV(HY) Lowest at CNY 231.23 MM

Underperformed the market in the last 1 year

The stock has generated a return of 10.28% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Qingdao Richen Food Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Qingdao Richen Food Co., Ltd.

-100.0%

0.57

35.70%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.59%

EBIT Growth (5y)

5.15%

EBIT to Interest (avg)

30.79

Debt to EBITDA (avg)

0.16

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.44

Tax Ratio

16.11%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

14.15%

ROE (avg)

9.86%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.10

EV to EBIT

12.65

EV to EBITDA

11.53

EV to Capital Employed

1.06

EV to Sales

2.54

PEG Ratio

0.42

Dividend Yield

5.90%

ROCE (Latest)

8.41%

ROE (Latest)

11.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 113.58 MM

NET SALES(HY)

At CNY 249.85 MM has Grown at 19.61%

ROCE(HY)

Highest at 11.45%

INVENTORY TURNOVER RATIO(HY)

Highest at 9.42 times

DEBTORS TURNOVER RATIO(HY)

Highest at 6.48 times

-19What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 56.54 %

INTEREST COVERAGE RATIO(Q)

Lowest at 1,055.3

RAW MATERIAL COST(Y)

Grown by 6.18% (YoY

CASH AND EQV(HY)

Lowest at CNY 214.97 MM

INTEREST(Q)

Highest at CNY 2.13 MM

OPERATING PROFIT(Q)

Lowest at CNY 22.53 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 17.96 %

Here's what is working for Qingdao Richen Food Co., Ltd.

Operating Cash Flow

Highest at CNY 113.58 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 249.85 MM has Grown at 19.61%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 9.42 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 6.48 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Qingdao Richen Food Co., Ltd.

Interest

At CNY 2.13 MM has Grown at 360.46%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,055.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 56.54 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at CNY 2.13 MM

in the last five periods and Increased by 360.46% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 22.53 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 17.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 214.97 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 6.18% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales